GST Software
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June 10, 2017
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Balance, Refunds & Penalty – Learn about Payments of GST


As per the GST regime, businesses that supply goods and services, need to pay goods and services tax. The GST is not applicable during the manufacturing process, it is applicable once the supply of the goods and services takes place.

Supply of goods happens as soon as the payment is received and invoice is dispensed

GST payments ˃ Rs. 10,000 should be paid online via NEFT, Netbanking or RTGS.

Balancing ITC with GST Payable

You can offset your input tax credit with the GST payable and the balance amount can be paid to the tax department.

Refund under GST for all three components: SGST, CGST, and IGST

It is claimed under the cases, as mentioned below:

  • While export of goods and services
  • In case of unused input tax credit
  • In case of extra payment made by mistake
  • UN bodies and embassies etc. refunds the tax amount
  • In case, credit is accumulated because of tax exempted output

You need fill out an electronic form from the GST portal, if you wish to claim a refund. The GST portal will verify your claim amount and reimburse the extra amount. The refund application process may take two weeks to 60 days.


GST defaulters are subjected to warning, followed by a penalty.

Penalties under GST can be categorized into two categories:

In case of nonpayment or short payment of GST, tax payers will be charged a penalty of minimum 10000 or 10% of the payable tax amount.

In case of tax evasion, tax payers will be charged a penalty equal to the amount of tax evaded.

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